MANILA, Philippines - As President Arroyo ends her term in the coming months, a research group asks: How does the Philippines' next chief executive intend to address the country's mounting debt obligations and budget deficit?

Think tank Ibon Foundation noted that the Arroyo administration is about to pass on a national government debt of almost P5 trillion and a likely year-end budget deficit of P300 billion to one of these presidential candidates in the 2010 polls:

• Former defense secretary Gilbert "Gibo" Teodoro (Lakas-Kampi-CMD)
• Sen. Manuel "Manny" Villar (Nacionalista Party)
• Sen. Benigno "Noynoy" Aquino (Liberal Party)
• JC de los Reyes (Ang Kapatiran)
• Former President Joseph "Erap" Estrada (Pwersa ng Masang Pilipino)
• Sen. Richard Gordon (Bagumbayan)
• Sen. Ana Consuelo "Jamby" Madrigal (Independent)
• Bro. Eddie Villanueva (Bangon Pilipinas)

Higher debt and deficit levels have serious implications on government spending on social services, and may even threaten to burden people with new and additional taxes.

Given this, Ibon said voters should be entitled to know how the next president would address the country's "chronic and worsening fiscal woes" in a "pro-people and sustainable manner."

"Concretely, 2010 presidential bets must make public their stand on the repeal of automatic debt servicing, cancellation of odious debt, increased allocation and spending for health, education, and housing, and reversing trade liberalization, improving collection efficiency, and addressing bureaucratic corruption and wastage to raise badly-needed revenues instead of imposing new taxes such as the tax on text messaging," Ibon said in a statement released Tuesday.

Based on the national government's total debt stock as of September last year, each Filipino owes an average of P47,039 to local and foreign creditors. A month before that, each of the 92.2 million Filipinos owes an average of P45,889.

This can be attributed to the country's widening budget deficit, which prompts the government from borrowing some more. Additional debts, which address current funding needs but could be paid in the future, translate to more debt burden for future generations. (Read: 2010 burden: Philippine deficits and debts)

According to Ibon, the government's national debt, which reached P4.92 trillion as of end-September, is almost 85.7% higher compared compared to when President Arroyo first assumed office in January 2001.

"As the deficit continues to swell, the government is expected to borrow more to fill the gap," Ibon said.

Weak revenues--due to slower economic growth, several revenue-eroding laws, the negative impact of typhoons on tax collection, and lackluster privatization of assets--have been blamed for the wider-than-expected deficit this year.

Except for privatization, which is expected to pick up steam, the same factors are seen to push the country's budget deficit above the government's P233.4-billion goal in 2010.